Location: Waldo County, ME | Metro: Waldo County, ME
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,420 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 04987, located in Utah, must be carefully weighed. First, consider the challenge of tenant turnover. The market rent for the area is set at $1,255, while the Fair Market Rent (FMR) for FY 2026 stands at $1,880. This discrepancy can lead to higher turnover rates as tenants seek out lower rents, which may not align with the FMR offered through Section 8 vouchers.
Vacancy exposure is another concern. With no available data on days on market (DOM), it's difficult to predict how long a property might remain vacant. However, the typical home value in the area is $251,390, and the median income is $44,583. These figures suggest that there may be limited financial resources available for landlords to cover deferred maintenance costs, which can quickly add up and affect profitability.
Despite these challenges, the high renter share of 13.6% in ZIP 04987 indicates a robust demand for rental properties. High renter density generally translates into a greater number of individuals seeking housing assistance through Section 8 vouchers, thereby increasing the likelihood of finding qualified tenants. This demographic trend can help mitigate some of the risks associated with vacancy and turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 04987 is moderate.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.